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SME cyber insurance uptake rockets since 2014

The uptake of SME cyber insurance has grown from 2.1% in 2014 to 13.7% in 2016, according to consulting firm GlobalData.

Analyst Danielle Cripps said: “Any business that holds personal information that can be sold on or used for identify fraud is vulnerable to cybercrime.

“SMEs are increasingly threatened by cybercriminals or system failures which a cyber insurance policy could help protect against. Indeed, SMEs could be argued to be most in need, as they have the fewest resources to recover from financial losses.”

Cripps predicts an EU directive will boost uptake.

“Cyber security will improve considerably in the UK as a result of the government’s new National Cyber Security Strategy and the EU’s General Data Protection Regulation.

“The latter, which comes into force on May 25, 2018, is expected to increase the number of companies that hold cover due to its requirement to notify both regulators and customers put at high risk about data breaches, and investigate issues with undue delay.

“Insurance will help by providing financial support, and may additionally give access to extra technical support from experts called out to help with a claim.

“Businesses will also have more accountability and conditions to comply with, making them more liable under the new regulation. The additional risk this creates means businesses are more likely to seek cover which will help drive the market.”